ARI's Suzanne Wilson Takes New Jersey Chapter Through Business Driving Options

The NAFA New Jersey Chapter met on February 12, 2013 at the Crown Plaza Edison Hotel and our topic this month was titled "Evaluating Business Driving Options - A look into fleet, reimbursement, motor pools, and car sharing." Our guest speaker was Suzanne Wilson, Market Research Manager for ARI.

Frank Memolo, Chapter Vice Chair opened the meeting by welcoming everyone and giving an update on upcoming events. Frank reminded everyone that the I&E is coming soon (April 22 - 25) in Atlantic City. The Chapter (along with the Philadelphia Chapter) would be hosting welcome tables at the I&E. Anyone interested in signing up to help can contact David Hayward at 484-961-0033.

Suzanne Wilson reviewed the different options available to provide vehicles for employees: assigned, motor pools, car sharing and reimbursement. Suzanne explained that they surveyed 500 companies that have fleets - 45 percent also have employees on reimbursement programs. She reviewed different cost scenarios for company and driver - as gas prices rise, over reporting of business mileage increases. She reviewed ways of mitigating risk through policies, MVR checks, operating condition, and driver training.

Lastly, she outlined when each of the different methods of providing driver transportation made the most sense:

When does a fleet make sense? A fleet is best when it meets the company's functional and competitive needs. Annual miles driven is also a key factor.

When does reimbursement make sense? Reimbursement is best when the driver needs are temporary, when annual mileage is low and when high turnover of employees is expected. It also works best when a company is "thinly capitalized", such as in the case of a start up company.

When does a motor pool make sense? Motor Pools work best when driving is geographically concentrated and miles driven are less than 10,000 per year. Motor Pools also require a management resource (computer program) to track usage.

When does car sharing make sense? Car sharing can only work if your usage is consistently light and availability of the service is plentiful enough to meet your employee needs.

Please mark your calendars for our next meeting! It will be held March 12, 2013 at the Crown Plaza Edison.

Special thanks to New Jersey Chapter Chair Frank Memolo and NAFA Affiliate Mark Petersen for their contribution.

NAFA Fleet Management Association
125 Village Blvd., Suite 200
Princeton, NJ 08540

Telephone: 609.720.0882 Fax: 609.452.8004